Washington D.C., March 11, 2021 - The Securities and Exchange Commission today charged a Denver resident for his role in a fraudulent scheme to gain control of Airborne Wireless Network, promote its stock, and defraud investors.

According to the SEC's complaint, Kalistratos "Kelly" Kabilafkas secretly purchased essentially all the outstanding stock of the shell company now known as Airborne, then distributed millions of shares among himself and his associates, including defendant Nicholas Kabylafkas. As alleged, Nicholas Kabylafkas participated in Kelly Kabilafkas's scheme by recruiting and falsely completing share transfer paperwork for at least one investor. In exchange, Kelly Kabilafkas allegedly gave Nicholas Kabylafkas Airborne shares and money. The complaint alleges that, at Kelly Kabilafkas's direction, Nicholas Kabylafkas deceived Airborne's transfer agent as well as a broker dealer in order to have those shares transferred into his own name, deposited in a brokerage account, and cleared for sale to the public. The complaint also alleges that Nicholas Kabylafkas then sold a portion of those shares for approximately $22,000. The SEC previously charged Kelly Kabilafkas and others in connection with this alleged scheme.

The complaint, filed in the U.S. District Court for the Southern District of New York, charges Nicholas Kabylafkas with violations of the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. Kabylafkas has consented, without admitting or denying the allegations in the SEC's complaint, to the entry of a final judgment ordering injunctive relief and a penny stock bar, as well as disgorgement, plus prejudgment interest, and a civil penalty in amounts to be determined by the court upon motion of the Commission. The proposed settlement with Kabylafkas is subject to court approval.

The SEC's investigation, which is continuing, is being conducted by Paul J. Bohr, Jennie B. Krasner, Drew Dorman, Jeffrey Anderson, and Robert Nesbitt, with the assistance of the Enforcement Division's IT Forensics Lab, and supervised by Peter Rosario, George Bagnall, and Jennifer Leete. The litigation is being led by Daniel Maher and David Misler, and is being supervised by Stephan Schlegelmilch. The SEC appreciates the assistance of the Financial Industry Regulatory Authority, British Columbia Securities Commission, Ontario Securities Commission, Thailand Securities and Exchange Commission, Cayman Islands Monetary Authority, Quĩbec Autoritĩ des Marchĩs Financiers, Netherlands Authority for the Financial Markets, Hellenic Capital Market Commission, and United Kingdom Financial Conduct Authority.